Nanny taxes. Even if it seems like some people don’t pay taxes, here’s a reminder of why it’s important to pay nanny taxes, and the added benefits of using a nanny payroll service:
1 - It’s legal.
This is the easiest answer anyone can give. You won’t have to worry about the IRS and labor law violations.
2 - Your nanny is covered.
You can feel good knowing that your nanny can establish an employment history. Doing so can help them receive Social Security income, Medicare, and unemployment benefits. All because you paid legally.
3 - It’s easy.
All you and your nanny need to do is complete and submit the required paperwork. Then you’d just submit the hours worked each week. You don’t have to worry about deducting federal and state payments yourself, dealing with personal checks, or any of the other complicated math that can arise.
4 - Tax breaks.
Nanny taxes won’t cost you as much as you think when you factor in child care tax breaks.
5 - Your nanny has documented income.
If your nanny wants to take out a loan to buy a car or a house, they need to prove that they have a job. Providing that proof is important for their future and their family’s future.
Have your own amazing story about balancing parenting and a major life event? Or want to share how having a nanny changed your families life? Email your story to [email protected] and you could be featured.